ACC108 week 3 assignment

Stockholders’ Equity & Corporations Worksheet

Part 1. Partnerships and Corporations

Use your own words to compare and contrast the characteristics of a partnership and the characteristics of a corporation. Use the Internet or your Fortis LIRN resources to support your answer, as appropriate. Be sure to cite your sources.

Part 2. Common Stock

On July 2, SpaceShifter Inc. issued 62,000 shares of $3.00 par value common stock.

a. Prepare the journal entry if the shares are issued for $10.00 per share. Enter your answers in the shaded boxes.

General Journal
Date	Account Names	Debit	Credit
Jul. 2
	To record sale of stock

b. Prepare the journal entry if the shares are issued for $6.00 per share. Enter your answers in the shaded boxes.

General Journal
Date	Account Names	Debit	Credit
Jul. 2
	To record sale of stock

Part 3. Cash Dividends

On November 23, Wheelhouse Entertainment declares a $180,000 dividend. Wheelhouse’s common stock has a $6 par value and 65,000 shares outstanding. Its preferred stock is 4%, $11 par, and 30,000 shares outstanding. Cope did not pay dividends for two years prior to the current year. The dividend is to be paid on December 31.

a. Prepare the journal entries for the declaration and payment of the dividend if the preferred stock is cumulative. Hint: Determine the preferred stock payment first. Enter your answers in the shaded boxes.

General Journal
Date	Account Names	Debit	Credit
Nov 23
	To record declaration of dividend

General Journal
Date	Account Names	Debit	Credit
Dec 31
	To record payment of dividend

b. Prepare the journal entries for the declaration and payment of the dividend if the preferred stock is noncumulative. Hint: Determine the preferred stock payment first. Enter your answers in the shaded boxes.

General Journal
Date	Account Names	Debit	Credit
Nov 23
	To record declaration of dividend

General Journal
Date	Account Names	Debit	Credit
Dec 31
	To record payment of dividend

Part 4. Stockholders’ Equity

Ralston Enterprises has a treasury stock balance of $300,000, a common stock balance of $2,500,000, a retained earnings balance of $3,200,000, a preferred stock balance of $600,000, and an additional paid-in capital balance of $1,000,000. Prepare the stockholders’ equity section of Ralston’s balance sheet. Enter your answers in the shaded boxes.

Total Stockholders’ Equity